Yara's Core Profit Soars 47% on Strong Production, High Prices
10.25.2024 By Tank Terminals - NEWS

October 25, 2024 [Reuters]- Yara International one of the world’s largest fertilizer producers, reported a bigger-than-expected 47% jump in its third-quarter core profit on Friday, helped by its focus on core operations to boost profitability.

 

“Yara is delivering all-time high production performance and strong premiums this quarter, a testament to the robustness of our operations and the value of our core business,” CEO Svein Tore Holsether said in the statement.

The Norway-based group’s shares rose 4.4% by 0806 GMT, outperforming the Oslo benchmark index that was broadly flat.

While European deliveries remain below pre-2022 levels, Yara said improved margins from phosphate-rock upgrading and stable potash prices led to stronger-than-expected results, setting it up for profitability once market conditions stabilize.

It also benefits from moving the most energy-intensive parts of production, such as ammonia, from Europe to regions with lower energy costs and a more favourable regulatory environment, like the U.S., Holsether told Reuters.

“The concern that I have is that we’re laying down our guard because now energy prices are at a lower level than what we saw in 2022 … But we were paying more than twice as much for natural gas in Europe this year compared to what would be a normal level before the war,” Holsether said.

Vast amounts of natural gas are required to produce fertilizers, so when gas prices surged following Russia’s invasion of Ukraine, they became more costly to produce and thus more expensive for farmers to buy.

Yara said the costs of buying natural gas in the fourth quarter were expected to be in line with last year’s level, while in the first quarter of 2025 they were projected to be $60 million higher year on year.

Its earnings before interest, tax, depreciation, amortisation (EBITDA), excluding items affecting comparability, soared to $585 million in the third quarter, while analysts had $482 million on average.

J.P.Morgan analysts said in a note the results were “a beat on all lines”, with the earnings beat mainly driven by better-than-expected net pricing.

 

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

India's First Methanol Plant to be Set up in Telangana
11.21.2024 - NEWS
November 21, 2024 [Chem Analyst]- In a groundbreaking initiative, India is set to get its first m... Read More
Egypt in Talks with Foreign Companies Over Long-Term LNG Purchases, Sources Say
11.21.2024 - NEWS
November 21, 2024 [Reuters]- Egypt is in talks with U.S. and other foreign companies to purchase ... Read More
INEOS and GNFC Sign a Memorandum of Understanding to Build a New World Scale Acetic Acid Unit in India
11.21.2024 - NEWS
November 21, 2024 [INEOS]- INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals L... Read More
Peru's State Oil Firm Could Open to Private Investors in 2025, Chairman says
11.21.2024 - NEWS
November 21, 2024 [Reuters]- Peru’s indebted state-run oil firm could consider offering a ... Read More